Palladium Slips 0.40% to USD 1,028.73 as Strong Dollar, High Yields and Weak Auto Demand Weigh

Aditi Sarkar

28 October 2026 06:37 PM AEDT

Palladium Slips 0.40% to USD 1,028.73 as Strong Dollar, High Yields and Weak Auto Demand Weigh

Image Source: Shutterstock

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Highlights

Palladium traded at USD 1,028.73, down 4.16 (-0.40%), during the session.
The session opened at USD 1,030.11 and reached a high of USD 1,042.69.
Palladium touched a session low of USD 1,028.73.
Palladium fell to around USD 1,170 on 2 October, a one-year low, and has slid further since.
The US has set final anti-dumping duties of 132.83% and countervailing duties of 109.1% on Russian palladium.
Traders are watching support near USD 1,000 and USD 960 and resistance near USD 1,080 and USD 1,160.

Palladium slipped 0.40% to USD 1,028.73 on 28 October 2026, extending a steep slide as a strong dollar, high Treasury yields and weaker automotive demand weighed on the metal. The session opened at USD 1,030.11 and ranged between USD 1,028.73 and USD 1,042.69, shedding 4.16.

The metal is trading far below its early-2026 peak, with an expected shift toward market surplus adding to the pressure.

Palladium Extends Its Slide

Palladium opened at USD 1,030.11, touched a high of USD 1,042.69 and is trading at its session low of USD 1,028.73, down 4.16 or 0.40%. On 2 October, palladium fell to around USD 1,170 an ounce, a one-year low, leaving it down 28.40% year to date at the time.

TradingView chart for Palladium

Image source: Tradingview chart, 28 October 2026

Strong Dollar and High Yields Weigh

At the start of October, the dollar hit a 17-month high and 10-year Treasury yields reached their highest level since 2002, making dollar-priced metals more expensive for overseas buyers and non-yielding assets less attractive. The dollar index stood at 101.69 and the 10-year yield at 5.146% in late-October data.

The Fed is expected to hold rates at 3.75%-4.00% at 14:00 ET today, with PCE inflation data due on 29 October.

Weaker Auto Demand and a Shift to Surplus

Lower expected automotive demand, linked to falling gasoline vehicle production, adds long-term pressure, and the market is expected to move into surplus as recycling rises. Platinum's return to gasoline vehicles after palladium's price spike has also hurt palladium demand.

Russian Supply and US Duties

The US Commerce Department issued a final anti-dumping duty of 132.83% in April 2026 and a final countervailing duty determination of 109.1% in May on Russian palladium, though the duties take effect only if the US International Trade Commission finds harm to US industry.

Nornickel expects 2026 palladium output of 2.415 million to 2.465 million ounces, down from 2.725 million ounces in 2025, which could be its lowest in 20 years. Lower mine output, especially from Russia, should limit further declines, although higher recycling will offset part of that supply drop.

Technical Outlook: Palladium

Palladium was quoted at USD 1,028.73, against an opening level of USD 1,030.11, a session high of USD 1,042.69 and a session low of USD 1,028.73. The change on the day stood at -4.16, or -0.40%.

Palladium peaked near USD 2,160 in late January 2026 and has posted lower highs since, with rallies in March, April, May and late August each stalling below the last. The slide since September has carried prices to their lowest level in more than a year. A sustained move higher would be needed before the pattern of lower highs is challenged.

Key Levels to Watch

The nearest support zone sits near USD 1,000, followed by the area near USD 960. Resistance sits near USD 1,080, followed by the area near USD 1,160. These are approximate levels rather than calculated pivots.

A hold above USD 1,000 would slow the recent decline, while a break below it would bring USD 960 into view. A sustained move through USD 1,080 would be needed before USD 1,160 becomes relevant.

Summary

Palladium fell 0.40% to USD 1,028.73 on 28 October 2026 as a strong dollar, high yields and weaker automotive demand weighed, while US duties on Russian metal and lower mine output offer partial support. The Fed decision today is next, with support near USD 1,000 and resistance near USD 1,080 framing the near-term range.

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